Stirling Square acquires Sustainable Agro Solutions

Harriet Matthews
08 July 2021

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Stirling Square Capital Partners has acquired Spain-based agricultural biostimulants producer Sustainable Agro Solutions (SAS).

Unquote sister publication Mergermarket reported in December 2020 that SAS was up for sale, with non-binding offers due on 11 December. Arta Capital, EQT, PAI Partners and Portobello Capital were linked to the process, while sources told Mergermarket that KPMG was the sell-side adviser.

The report added that the company posts EBITDA in the €13-14m region and cited a source who said the company could generate a validation multiple of 12x, comparing it with Partners Group's £909m acquisition of Rovensa from Bridgepoint in July 2020.

According to press reports, the company generated EBITDA of €15m in 2020.

The deal is the sixth platform investment from Stirling Square Capital Partners IV, which held a final close in January 2020 on £950m. The fund invests in pan-European mid-market businesses with enterprise values of €50-500m. Prior to acquiring SAS, the fund's latest platform investment was adult care service Consensus, which the GP acquired in January 2021.

Although Stirling Square manages a pan-European strategy and has invested in 13 countries across the continent, the deal is the GP's first platform investment in Spain, according to Unquote Data.

The GP said in a statement that the company's sustainability credentials are clear from its product offering and its production processes, meaning that the investment is aligned with Stirling Square's ESG strategy.

The firm added in the same statement that it intends to support the company with the consolidation of the fragmented biostimulants market, both organically and through international M&A activity.

Company
SAS produces a range of agricultural fertiliser products, including biostimulants, soil and water improvers, defence activators, and plant nutrition products. Founded in 1989, the company is headquartered in Lleida in Spain but has additional operations in 90 countries in Latin America, Europe, Africa and Asia.

People
Stirling Square Capital Partners – Enrico Biale (partner).
Sustainable Agro Solutions – Eduard Vallverdú (CEO).